How Branding Impacts Profits

Q.Aspen | Consulting & Venture Development2

Michael Olorunninwo currently leads operations strategy and planning at Seven

Energy Nigeria. He previously worked as Management Consultant at KPMG and as

Aviation Risk Underwriter at NICON Insurance Plc. His experience cuts across

Business Development, Corporate Strategy, Financial Management, Human

Resources and Operations (Business Process) Improvement. He has consulted for

companies in Consumer Markets, Energy, Financial Services, and Hi-Tech.

Michael is also co-founder/project lead at Q.Aspen, a consulting and venture

development social enterprise focused on developing hi-potential SME

opportunities. Q.Aspen’s mission is to build successful indigenous African

businesses of the next century.

Speaker Bio


Outline

Key Branding Concepts

Benefits of Effective Branding



Customer Value


Brand Message


Customer ValuePrimary features of your product or service that your customers

consider most important to them


Features that makes customers want to buy your product

over those of competitors

Sum total of benefits a customer will derive from making a

purchase decision

Think Value Proposition!


Customer Value Examples

High-Quality

Low-Cost

Durability

Innovation

Power

Positive-Feeling

Exclusivity

Satisfaction

TasteLuxury

Energy

El-Dorado!

Reliability

Tradition

Solving Problem Fun Entertainment Education

Expertise Predictability Predictability Interaction


Brand MessageA phrase that makes your customers believe you are the only one

with a solution to their unique problem

Back to Concepts

Short phrase that emotionally connects with your target market

and communicates the most important benefits of your product

If you need to be one thing in your customers’ mind,

what would it be?


Brand Message Examples

Think different! Ultimate Driving Machine

Always LowPrices!

What customer values do these project?


Key Branding Question

“Are you the maverick in your industry or the experienced,

reliable one?

Is your product the high-cost, high-quality option, or the

low-cost, high-value option?”

You may not afford to be

ALL THINGS to ALL PEOPLE!


Credibility

Buyer Motivation

Emotional Connection

Recognition

Staff Motivation and Direction

Likeability & Referrals

Targets AudienceExpectations


Q.Aspen | Consulting & Venture Development


11

In 2008, Ford was ailing, decided to sell its luxury brands of Jaguar and Range

Rover to Tata for $2.56 billion. The deal sum included: Factories, Raw

Materials, Employees, Intellectual Property and Brand Value.

However, the estimated brand-value of these brands were worth more than all

other ingredients of the deal combined.



N100 N100

N135,000 N80,000C

hap

man

N100 N2,000N50 N10

Products with comparable branding

have comparable prices,

although quantity consumed may

differ widely



They all sell for N50. Why? What’s Different?



14

A 2010 survey of 25 alcoholic beverage brands revealed that customers

were willing to pay premium for products with better branding and

consume them in even greater quantities.

Effective BrandingHigher Prices +

Greater Quantity Sold

Increased Profitability


Final Word

15

“If this business were split up, I would

give you the land and bricks and mortar,

and I would take the brands and

trademarks, and I would fare better than

you.” - John Stuart, former CEO of Quaker Oats


Q.Aspen is a social enterprise focused on providing consulting & venture

development solutions to high-potential SMEs in Africa.

Our focus is to embrace entrepreneurs as they aspire to pursue new

markets, visible growth, profitability, and attain efficiency.

Our experienced, multi-disciplinary professional teams are equipped to

guide your business to achieve desired marketplace success.

Michael Olorunninwo | +234 808 718 5748 | [email protected]

How Branding Impacts Profits

Business

Transcript of How Branding Impacts Profits